Get out of a financial depression

A reader asked, "I believe that I am severely depressed. I cannot afford to pay my bills on time, but I still seem to work all the time. On my days off I just want to lay in bed all day. I don’t enjoy hanging out with my friends or enjoy my job. How can I enjoy my life again and what can I do to feel more financially secure and not depressed about my life?"

A. This is unfortunately a problem I hear all too often. Many people who are experiencing financial problems may also suffer from a depressed mood. We all have a tendency to experience depression from time to time. It only becomes a problem when your depression begins to interrupt your daily routine. You may feel like you are trying to live day by day, but in your eyes you may feel like you are failing financially and not enjoying your life.

You are facing two problems: the first being financial problems and the second being how the financial problems affect your mood and ability to enjoy your life. First, getting a handle on your financial problem can make a difference with your mood. If you feel you are in control of your financial situation, then as a natural consequence you will begin to feel better and more hopeful about your life.

However, you have to honestly look at what you must give up in order to alleviate the worry and learn to live without your wants. Most people have to live with compromise, not buying everything we want, but only the necessities.

Some ways to help alleviate financial worry include:

• Change the way you think about money. This may be tough for most of us. It seems as if we will do whatever it takes to get what we want. This can lead to severe financial problems if we do not learn to delay our gratification. Ask yourself: “Do I really need this or do I just want this?” Then invoke the 72 hour rule. If after 72 hours you really feel you need it, then you may choose to buy it, but at least you have thought about it and the purchase won’t be made out of an impulse.

• Take an honest look at your expenses and record each monthly expense. What are you spending your money on each month? Are your large expenses from items that you really cannot afford? Spending on large expenses whether you believe they are needs or wants, can leave you with a feeling of never getting ahead, hence the “why bother” attitude. Make a list of your needs, such as mortgage/rent, utilities and food. Then make a list of wants such as clothes, social outings etc. It is important to be able to visually see where your money is going.

• Review your expenses each month. Look for ways to reduce your spending, such as eating out less, shopping for cheaper insurance or clipping coupons. A good rule to live by is if you cannot buy it with cash, then you can’t afford it.

• Set aside some money for savings. It doesn’t matter if you can set aside $5 or $500 a month. Be realistic about what you can set aside for savings. Setting aside any amount of money is better than having no savings at all.

If, after getting yourself in a better financial position, you still find yourself not enjoying your life and still depressed, then you may want to look at other reasons why your depressed mood is interfering with your life. Feeling depressed is often a symptom of worry, stress and negative thinking patterns, which can have a way of taking over our life.